Getting Global…successfully!!

Patricia Benito de MateoConsultant and Former e-Commerce Director Grupo Cortefiel

Amsterdam, 7th October 2015

Agenda

1. Getting Global

2. How to succeed Globally?

3. Summary

Getting Global

Global ecommerce overview

Source: Ecommerce Foundation

25% of Europeans are fashion e-shoppers, 65% of which are between 16-44 years old

Source: Deloitte analysis and cadenasuministro.es

359bill €

Size of the European e-commerce (Spain €16,9bn)

Getting Global

Consumers that bought internationally in 2014

Average increase per year of international buyers

B2C online exports in the UK and Germany

There is a great opportunity for growing cross-border. Only 5% of the international European sales online makes a bet for Spain

Getting Global

Where international

European customers

buy

Which are the main markets for the Spanish exports?

Source: Deloitte Analysis

Getting Global

The on-line business is very seductive: you can go globally quicker and cheaper.

The trap is that you can easilly fail

To be successful and avoid any risk you need to have a clear strategy and be very

disciplined setting priorities

3 Key Questions to respond (right…):

13

2

How to succeed Globally?

Fix prioritiesIdentify StrategiesBuild a Plan

Country interest (Population vs internet penetration)

China 1.350 millions and India 1.230 milions

High interest

High potential

Niche

Discard

50

+ Penetration (0<100)

+ Population (millions)

Where to Go?1

Source: Own analysis

Where to Go?

Be focused, expand right

1

32 Existing market /Country “interest”

Country “interest”: Population vs Internet penetrat.

Not an existing market buy high epotential

+ Operation/Market complexity/Competitors

Countries selection, timing & Plan

1

First premise when going international:

“Everything is global, but….everybody is local”

How to Go?2

Key to define, what is Global, what is Local and what is a combination of both

How to Go?

AREA 100% GLOBAL

MIX 100% LOCAL

BRANDLOOK & FEEL

PRODUCTPROMOTIONSWEB ARCHI

SEMMODELS

LANGUAGECSTMR SRVC

SOCIAL MEDIA

PYMNT MTHDLAWS & RGLTNS

2

How to Go?

1

3

2

Own web could be first option if enough Brand awareness and resources in the local market, but a combination of channels can also be considered as an excellent alternative formula

2

• Benchmark of services of key players: which are the market rules/ can we be better? Shopping habits

• Use of local language in all the contents: website, newsletters, display: Customer Relevancy

• Currency converter

• Payment mix adapted to each country and to mobile (UK, Sweden)

• Global and flexible delivery (need for cheaper delivery fees and increase of service quality)

• Specific laws and regulations

• Local customer service in targeted countries

• Fraud policies in order to avoid high fraud rates in cross-border payments

• Omnichannel approach in existing markets

• Need to have the proper technology to execute this strategy

How to Provide Service?

Websites in new international markets have to gain the trust of the potential costumer through:

3

How to Provide Service?

In Europe, despite most of the payments are through credit card/Paypal, mobile payment is experiencing a fast growth (in 2017 estimated 25% of payments)Europe

Despite the predominance of

credit card, method payments are very

different country by country

3

Summary

1. The Opportunity is global, big and in constant growth

2. Selection of markets is key, and can be done through a rational process

3. Need to clearly define what needs to be fully global, and what needs to be adapted/done locally

4. Opportunity to develop/reinforce the expansion with third parties (multibrand webs and Franchise)

5. Need to be “market right” as per the services, support and payments

Summary

STRATEGY IS KEY…THE OPPORTUNITY IS

IN YOUR HANDS

Summary

THANKS !!!!